Designing Cash Transfer Programs for an Older Population
The Mexican Case
Published in: The Journal of the Economics of Ageing, Volume 9 (June 2017), Pages 111-121. doi: 10.1016/j.jeoa.2016.09.001
Posted on rand.org Jun 28, 2017
Aging populations and the prevalence of poverty in old age have led to the introduction of noncontributory pensions in many countries. We consider a number of alternative targeting approaches and simulate their effects in an empirical application in the State of Yucatan, Mexico. We compare the approaches with respect to leakage, under-coverage, and their effects on government budgets. We are also able to compare the simulated effects of one alternative with the observed effect of a recently introduced demogrant and find that the simulation is a close approximation of the empirical outcomes. We discuss issues of implementation and political feasibility.